Cyber is a fast growing line of business, globally, and London is at the centre of that. But insurance alone is not the answer, which could be said for all risks. This is where brokers can add value to both their clients and their insurers. Broking the risk should be just one part of the role for a broker. The broker should be bringing together a package that provides a "solution" to the risk for the customer and improve the attractiveness of the risk for the underwriter. This will involve bringing together other (non-insurance) parties that can provide value add services. In essence, a package solution that provides a win/win for all parties and differentiates the broker. Cyber is most certainly one class where the broker could be innovative.
“Insurance alone cannot manage cyber-risk; we need a holistic approach. As insurers, we may decide a cyber-risk is a good risk when the insurance buying firm has put controls in place that meet one of another set of international standards. However, this paper shows that a cyber-risk gap may diminish the value of companies’ efforts to protect their assets from cyber-harm.”